SwisDerm Review: Swissderm knock-off skin-care pyramid
SwisDerm provides no information on its website about who owns or runs the company.
Despite marketing itself with prominent Swiss branding, SwisDerm is actually a Malaysian MLM company.
As far as I can tell SwisDerm doesn’t have any ties to Switzerland.
On social media SwisDerm credits this guy as their CEO:
Wasn’t the easiest journey but eventually I was able to pin SwisDerm’s CEO down to Vincent Low.
Due to language-barriers, I was unable to establish whether Low had an MLM history prior to SwisDerm.
As always, if an MLM company is not openly upfront about who is running or owns it, think long and hard about joining and/or handing over any money.
SwisDerm market a range of personal care products with SwisDerm branding:
- Swisderm Sun Protector – SPF 30 sunscreen protection
- S Factor – “fights against skin ageing”
- SwisWhite Bio-White Cream – “improves skin appearance, skin elasticity and eliminates dark spots”
- Hydrating Toning Lotion – “reduce wrinkles, lighten pigmentation, moisturizing, minimize pores, reduce blackheads, reduce whitebeads, brightening (and) lifting”
- 3S Capsule – skincare for the face with anti-aging
- B’tox Cream – “smooth facial lines and wrinkles, contour face, moisturizes dry, rough skin, lift sagging cheeks, repair damaged skin cells”
Note that SwisDerm do not provide retail pricing on their website. It is unclear whether SwisDerm products are available for retail purchase.
SwisDerm’s Compensation Plan
SwisDerm affiliates sign up with an affiliate package. Commissions are paid when they recruit others who do the same.
Note that SwisDerm do not provide a copy of their compensation plan on their website.
The following analysis has been put together from various SwisDerm affiliate presentations and marketing material.
Direct Recruitment Commissions
SwisDerm affiliates earn a 40% commission on sales volume generated when a new recruit signs up.
This equates to
- $12 on recruitment of a Fast Start tier affiliate
- $24 on recruitment of a Bronze tier affiliate
- $72 on recruitment of a Silver tier affiliate
- $168 on recruitment of a Gold tier affiliate
- $336 on recruitment of a Platinum tier affiliate
An additional 6% is paid if a presentation is given, although it’s unclear how SwisDerm verifies this.
Platinum tier affiliates also receive a 5% “key in bonus”. I believe this bonus is rolled upline is a non Platinum affiliate recruits someone.
SwisDerm pays residual commissions via a binary compensation structure.
A binary compensation structure places an affiliate at the top of a binary team, split into two sides (left and right):
The first level of the binary team houses two positions. The second level of the binary team is generated by splitting these first two positions into another two positions each (4 positions).
Subsequent levels of the binary team are generated as required, with each new level housing twice as many positions as the previous level.
Positions in the binary team are filled via direct and indirect recruitment of affiliates. Note there is no limit to how deep a binary team can grow.
At the end of each day SwisDerm tallies up new sales volume on both sides of the binary team.
Sales volume is generated when recruited affiliates pay membership fees:
- a Fast Start package generates 30 BV
- a Bronze package generates 60 BV
- a Silver package generates 180 BV
- a Gold package generates 420 BV
- a Platinum package generates 840 BV
Residual commissions are paid out at 10% to 15% of BV matched on both sides of the binary team.
- Fast Start and Bronze tier affiliates earn 10%
- Silver tier affiliates earn 12%
- Gold tier affiliates earn 13%
- Platinum tier affiliates earn 15%
Once paid out on matched volume is flushed. Any leftover volume on the stronger binary team side carries over.
Note that if an affiliate generates more than five pairs of Bronze packages across their binary team in a day, from the sixth Bronze package pairing a 35% residual commission rate is paid.
This bonus rate only applies to that day.
SwisDerm pays a Matching Bonus using a unilevel compensation structure.
A unilevel compensation structure places an affiliate at the top of a unilevel team, with every personally recruited affiliate placed directly under them (level 1):
If any level 1 affiliates recruit new affiliates, they are placed on level 2 of the original affiliate’s unilevel team.
If any level 2 affiliates recruit new affiliates, they are placed on level 3 and so on and so forth down a theoretical infinite number of levels.
SwisDerm caps the Matching Bonus at five unilevel team levels, both up and down.
The Matching Bonus is paid out as 5% of residual commissions earned across these effective ten levels.
To clarify, that’s five levels upline and five levels downline.
SwisDerm affiliates are able to earn 4% to 8% on something called their “super right leg”.
What the “super right leg” is isn’t defined.
Rank Achievement Bonuses
SwisDerm reward affiliates with what appear to be time-sensitive Rank Achievement Bonuses.
Bonuses able to be earned include a cellphone worth up to $200, a motorbike or trip, a $5000 compact car, a $20,000 executive car and a $50,000 house.
Rank Achievement Bonus qualification criteria is not provided.
SwisDerm affiliate membership is tied to the purchase of a package:
- Fast Start – $60 (1 SwisDerm product)
- Bronze – $120 (2 SwisDerm products)
- Silver – $340 (6 SwisDerm products)
- Gold – $780 (14 SwisDerm products)
- Platinum – $1400 (28 SwisDerm products)
The more a SwisDerm affiliate spends when they sign up the higher their income potential.
SwisDerm using Swiss flag branding but being a Malaysian company struck me as odd off the bat.
It wasn’t until I came across SwissDerm that I realized the company’s name only had one “s” to differentiate itself.
SwissDerm AG appears to be an actual Swiss skin-care company. SwisDerm presents itself as a knock-off substitute.
SwissDerm AG launched in 2007 and precedes SwisDerm by six years.
SwisDerm’s products have some overlap with what SwissDerm AG offers, however they don’t appear to be the same.
The labeling is different and SwisDerm’s range appears much more focused on skin whitening.
Following the general theme of not providing basic information on their website, SwisDerm don’t provide any information on their product manufacturing process.
Moving onto their compensation plan, SwisDerm operates as a product-based pyramid scheme.
If SwisDerm’s products are available outside of its packages, that has nothing to do with the company’s compensation plan.
That also means it’s outside the scope of SwisDerm’s MLM opportunity.
As presented, SwisDerm’s compensation plan is a closed-loop recruitment scheme.
You sign up, pay your SwisDerm membership fee and then get paid to recruit others who do the same.
This is your classic pyramid scheme and falls apart when recruitment dries up.
One last thing I’ll touch on is illegal medical claims made with respect to SwisDerm’s products.
This is taken from SwisDerm’s official Facebook account:
SwisDerm’s products aren’t registered to cure or treat any diseases in any jurisdiction.
Anyone making medical claims is doing so illegally and without verifiable proof. Considering SwisDerm launched in early 2013, they’ve had plenty of time to commission studies and get their products registered as licensed treatments.
Over seven years to date and they haven’t. Why should be obvious.